|
BAE SYSTEMS plc and Finmeccanica Spa have signed a Memorandum of
Understanding to establish a partnership, Eurosystems, bringing together
their European defence electronic systems activities. The partnership
establishes a Strategic Coordination Committee (SCC) and three majority
controlled Joint Ventures, each with clear operational control of its
business.
The SCC, formed by senior managers of the shareholders, will facilitate
the co-operation and interaction of the joint ventures. The SCC will
also ensure that the JV strategies support the multi-domain nature of
future defence requirements and respond to the demand for highly
integrated systems.
The three JVs will operate in the following areas:
-
A Systems Integration
and C4ISR business, to be majority owned and managed by BAE SYSTEMS,
with capabilities in C4ISR information systems and sub-systems,
combat management systems, land & naval radars and air traffic
control systems. The business will be formed from existing
activities of AMS (a 50-50 JV of BAE Systems and Finmeccanica) and
BAE SYSTEMS C4ISR (less communications).
-
A Communications
Systems business, to be majority owned and managed by Finmeccanica,
with capabilities in strategic and tactical communication systems,
networks and secure systems. The business will be formed from the
existing activities of Marconi Selenia Communications and the
communications activities of BAE SYSTEMS C4ISR.
-
An Avionics business,
to be majority owned and managed by Finmeccanica, with capabilities
in sensor systems, airborne radars, mission systems, electro-optics
and electronic warfare systems. The business will be formed from
activities within BAE SYSTEMS Avionics and Finmeccanica's Galileo
Avionica.
Having established the principle of a structure and management framework
that delivers clear accountability and positions the businesses in line
with the needs of the market, the two companies will move into a
detailed process of valuation. The formation of the three joint ventures
is subject to the parties executing definitive agreements and obtaining
all necessary regulatory clearances. The arrangements announced today do
not affect the interests of BAE Systems and Finmeccanica in MBDA.
Richard Evans and Pierfrancesco Guarguaglini, the Chairmen of the
respective parent companies, said in a joint statement today, "Our
companies have shared objectives in a desire to improve their
performance in the market, establish businesses that address the trend
towards integrated systems and enhance their operational effectiveness.
The MOU we have signed today provides the framework to achieve these
objectives. Much detailed work remains to be done before the new
companies are operational but we are confident that we will create
companies that will meet our customers' requirements and provide
opportunities for profitable growth."
About
BAE SYSTEMS:
BAE SYSTEMS is an international company engaged in the development,
delivery and support of advanced defence and aerospace systems in the
air, on land, at sea and in space. The company designs, manufactures and
supports military aircraft, surface ships, submarines, radar, avionics,
communications, electronics and guided weapon systems. It is a pioneer
in technology with a heritage stretching back hundreds of years. It is
at the forefront of innovation, working to develop the next generation
of intelligent defence systems.
BAE SYSTEMS has major operations across five continents and customers in
some 130 countries. The company has 100,000 people and generates annual
sales of approximately £12 billion through its wholly-owned and joint
venture operations. BAE SYSTEMS, innovating for a safer world.
About
Finmeccanica SpA
Finmeccanica is Italy's second-largest manufacturing company and its
leading high-tech company. The group operates primarily in the aerospace
and defence sectors, but also has significant know-how and manufacturing
assets in sectors such as rail transport, energy and IT. Finmeccanica's
aerospace and defence activities account for around 70% of consolidated
sales, and employ more than 32,000 staff. Finmeccanica also ranks as
Italian number one in research and development: the group invests around
EUR 1 billion a year (or 13% of its value of production) in advanced
technology, notably dual technologies.
|
